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Long-term ocean freight rates may have started bottoming out after around a year of persistent, often dramatic monthly falls, says Xeneta in its latest update.
«The latest General Rates Increases (GRIs) from carriers appear to have held relatively firm, pushing spot rates up above long-term rates on key corridors. As such, long-term prices may now follow suit and rally, meaning now is the time for cost-conscious shippers to assess strategies and negotiate new contracts.»
Looking at the key Far East to North Europe trade lane, Xeneta’s real-time data shows that, even though spot rates have fallen by around $100 per FEU since early August’s GRIs, they are still around a third higher than prices in early July, the update added. «This is in contrast to GRI moves earlier this year, which largely failed to influence a market hamstrung by weak demand and rampant over capacity.»
Emily Stausbøll, an analyst at Xeneta, says: “This is a definite, eye-catching change, and shippers should view this as a bit of a wake-up call.”
Read more in an article from Indian Transport & Logistics News.